Sterling briefly rises against the dollar after some positive UK data from $1.6096 to $1.6117 within 15 minutes of the data at 08:30 GMT.
UK Manufacturing output growth increased more than expected in March by 0.9 percent on a monthly basis compared to expectation of 0.5 percent rise. There was only a modest downward revision to the February data to -1.5 percent versus to a prior -1.4 percent.
Meanwhile, UK industrial production numbers were in line with expectations, posting a drop of 0.3 percent.
The data gave some optimism that there probably will not be any revisions to the -0.2 percent Q1 figure. Overall the data for Q1 show that the manufacturing sector is largely moving sideways while IP(industrial production ) is in negative territory.
The focus now turns to the more important Bank of England policy meeting due at 11:00 GMT later today. Expectations suggest Mervyn King and company will stick with the status quo, keeping the target lending rate at 0.5 percent and holding off from expanding asset purchases beyond £325 billion. This means that staying on hold could prove supportive for sterling.